Abstract：Global financial authorities & IMF introduce a plan to regulate cryptocurrency, aiming to ensure global economic safety. Highlights from the G20 summit discussion.
In a fresh move to safeguard the global economy, the International Monetary Fund (IMF) and world financial regulators rolled out a plan on Thursday, targeting potential risks from cryptocurrencies.
The chief concern？ Crypto might throw a wrench in the larger global economy and finance system. Some folks haven't been playing by the rules, a challenge flagged by the G20's financial guard dog, the Financial Stability Board, and the IMF.
Despite all the buzz around cryptocurrencies promising quicker, cheaper international transactions and hopes to include more people in the banking system, these benefits haven't really hit the ground running yet.
The experts have a warning: if everyone jumps on the crypto train, it might mess up money policies by countries, pull funds from real-world businesses, and even shake the world's financial foundations. This, the authorities say, could lead to bigger problems like money laundering and other financial crimes.
Now, they've laid down some deadlines. Countries part of the IMF and G20 have been given a time frame to put in place the newest rules around cryptocurrency, as suggested by the Financial Stability Board and IOSCO, the big-shot group of securities regulators worldwide.
This whole push towards stricter rules didn't come out of the blue. Just last year, the FTX crypto exchange went belly up, causing a market earthquake and burning a hole in investors' pockets.
Before the month ends, G20 leaders will have a closer look at this roadmap at a summit in New Delhi.
Interestingly, while the European Union is ahead of the game with a full set of crypto rules, the rest of the world's approach seems a bit scattered. The paper further nudged governments to keep their finances tight to avoid heavy inflation, which can weaken regular money and push folks toward cryptos. And, to clear up any confusion, they're urging to make crypto tax rules crystal clear.
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